HOUSEHOLDS were hit with another above-inflation increase in power bills yesterday after an energy firm announced its second hike of the year.

Powergen, one of the six biggest suppliers in the UK, with about 140,000 customers in Scotland, said it was increasing charges by 12.4-per cent for gas and 9.4-per cent for electricity.

It is the 12th price rise from the major suppliers since January and means the average Powergen gas bill, according to watchdog Energywatch, has more than doubled in the last three years to GBP644 a year, and electricity up 62-per cent to GBP333.

The move follows a reported drop in annual profits of 26-per cent this week, blamed on a rise in the cost of wholesale gas, although German parent company E.ON saw profits rise by 13-per cent to GBP3.26bn. The fall in UK profits from GBP413m to GBP304m in the first six months of the year came despite an earlier above-inflation rise in bills.

The latest Powergen rise follows its last increase in March, when gas went up by 24.4-per cent and electricity by 18.4-per cent.

Nick Horler, Powergen retail managing director, said: "We take today's announcement very seriously and we have fully considered its impact on our customers."

Each of the six major domestic fuel suppliers in Britain has now introduced its second price rise of the year. Next month, British Gas customers will see a rise of 12.4-per cent in gas prices and 9.4-per cent for electricity take effect.

ScottishPower increased bills by 17-per cent for gas and 10-per cent for electricity in June, just three months after a 15-per cent gas and 8-per cent electricity rise.

The latest rise was met with calls from politicians and campaign groups for help to ensure elderly people could afford to heat their homes this winter.

Graham Kerr, of Energywatch Scotland, said: "With one in four households in Scotland now in fuel poverty, government and industry must come up with an effective strategy to protect those vulnerable customers most in need.

"The energy market is stuck in a high-price rut. That means millions in fuel poverty, bigger bills for everyone, inflationary pressures and higher interest rates."

Mervyn Kohler, head of public affairs at Help the Aged, said: "These fuel price increases are just the latest in a long line of inflation-busting rises in household bills which will hit the poorest pensioners hard.

"On top of spiralling council tax and water-rates bills, many older people will struggle to afford to pay them and still have money left over to afford basics like food and clothes.

"The GBP4bn of benefits left unclaimed by the poorest pensioners should be used to relieve persistent poverty among older people."

Mike Weir, SNP work and pensions spokesman, said: "The government have themselves recognised the problem and stated in the energy review that they would consider help for groups other than pensioners who were suffering from fuel poverty.

"They have said they will consider rolling out schemes after this winter. That is not good enough. Action is needed now."